Daily Republican., 1887-09-03
A BI0 RAILROAD DEAL,
The baltimore and Ohio Passes Uader
tho CONTROL of = syDdioate-To be
Operated by tho fonnsyiyAnia

The baltimore and Ohio Passes Und
tho CONTROL OF = sypdioats-To be
Operated by tho fonnsyivania.
NEW YORK, Sept. 2.-After . long
conference OF capitslists at the Offices
OF Drexel, Morgan q 90. the following
was issrod to-day by the fIm Of
Drexel. Morgan & Co:
A preliminary contract has been exc
cuted to-day bel iWeen the Baltimore end
Ohio Railroad Company, Barring Bros.
q 20. aud Brown, 6hipley q Co Lon
don, and their allied houses on this
side. This contract provides for the
negotiation Of 80, 100000 Baltimore q
Ohio consolidated 5s, 5000 900 Bal.i-
more and Ohio preferred stock, for the
purpose OF paying Of the entire Il foAt.ng q
debt OF the company and plscing 1t on
. sound financial basis. Tue conditions
aro - follows:
Fret. Ths verincstion OF statements,
etc, ~ made. -
Second. That the management OF the
company shall bs placed in com mpetent
hands sstistsciory 70 the syndicate.
Third. That satisfactory contracts
shall be made between the Baltimore
aud Ohio And the other roads for New
York busiEess, which shall remove all
Antaeonisms bet Reen them on the sub
Ject and insure the peymanent working
OF the Baltimore and Ohio In entire
harmony with the other trunk lines
also avoid construction or threat of con
structi0u of expensive parallel lines
north and east of Philadelphia.
The houses interested on this ride are
Drezel, Morgan b Co., Drexel & Co.,
Brown Bros, and Kicder, Peabody &
Co.
STORY OF THE DEAL.
Ever eince Garrett wrote his letter to
Mr.. singerly, editor of tho Record OF
Philadelphis, breaking of the Ives ne
gotiAtlons, he has been working TO tave
his Baltimore and Ohio road Tbs De
goiiatione were continued by him with
j. 3. Morgan ON his arrival in London,
and to-day an arrangement was an
nounced that 10 only oqua;led by tina,
OF the West Shore settlement with the
New York Central and tho forming oil
the Reading syndicate to reorgsnizs
that company. Both OF these deals
were carried through BY Drexel, Nor.
gan & 90.
Eawsrd Lautsrback gave Q legal
opinion to-day upon the questiou
whether the fterling loan made by
the Baltimore and Ohio Railroad
covered the telegraph system Of the
company. He decided that the tele
graph lines were FREQ from all liers
and on receiving this opinion the as rce
ment In the nature OF o preliminary
contract was executed. Tho parties tt
tho contract are the Baltimore ard Ohio
Railroad Company and o syndicat,
com posed Of j. 8. Morgan q Go.
Barring Bros. h Co, ana Brown, Ship
ley q Co Of London; DrexeI, Morgan
& Co.,. Kidder, Peabody & Co., ant
Brown Bros. % Co., Of this city, ant
Drexel q 90 OF Philadel- -phin.
A. J. CAssArT FOR PRESIDENT.
The most important point in the con
tract provides that the management O
company shall be placed in Sow -eten
hands satisfactory to the syndisat:. A
j. Casoatt, the vice president OF tht
Pennsylvania railroad, 10 generally be
lieved to be booked ~ Garrett's suc
csssor.
Satisfactory contracts are also to b.
made with the penpsylvania and Read
ing railroads on all business north O
Philadelphia and With all tbs othe
trunk linea entering New York, b,
which Eli antagorism will be removed
and insure the permanent working O
! Baltimore and Ohio In harmony will
the other trunk lines. In addition t.
these contracts the line in process O
construction fsom Philsde phia to Nex
York will be suspep ded, and the worn
on Staten Island stopped.
In consideration OF these contract,
being signed. and with the control IL
their hands, the sy Indicate agrees to re
lieve the railroad from its pra,ent em
oarrassmant by providing $1,000 ,OOt
with which to take up the fioatine
debt This will bo represented by
81 ,000. 600 In Baltimore and Ohio consoli
dated fives and 5000, 900 preferred
stock. The floating debt as 1t stand.
amounts to $1,000 900, mostly in the
shape OF certificates Of Indebtedness
scrip and notes. OF this Amoun,
u 600, 600 Is said to have matured on
the 1st instant, and was the chic,
factor in bringing about the present
result.
PRACTICALLY BELONGS To PENNsY,
One OF the parties to the syndicate
says: "AlI the outside enterprises OF
the Baltimore and Ohio Company will
be sold to parties 20 whom they will be
valuable. The Western Union will
control IL 1t does not buy the telegraph
lines; and the Pullman Palaces Oar
Company will take the sleeping car
business. The express business has
already gone to the United States Ex.
piess Company. The affairs OF the
railroad company will be entirely rt :
organized aud placed upon q sound a.
naDcisl basis"